E452 Reading 3b Questions - trade 4 How can a country have...

NameECONOMICS 452QUIZ 3B“Not So Absolutely Fabulous” The Economist 11-04-1995 & “Does Trade with Low-Wage Countries Hurt AmericanWorkers” FRBP Business Review March/April 19981. Why do protectionists in rich countries such as the United States complain thatemerging countries such as China have an unfair advantage? What is the key flawin their complaint?2. What determines absolute advantage? How would a U.S. absolute advantage inall goods compared to China be reflected in wages?3. What determines comparative advantage? How would a U.S. comparativeadvantage in complex machinery compared to China be seen in the pattern of

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Unformatted text preview: trade? 4. How can a country have low wages yet high costs of producing some goods? 5. What will firms do if wages are less than the value of the output produced by an additional worker? 6. What did Golub find about unit labor costs in developing countries such as Malaysia, India, and the Philippines compared to the United States? 7. Did Golub find that wages explained the pattern of trade in manufacturing? 8. If emerging economies experience faster productivity growth than the United States, how will wages adjust?...
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